Curve DAO Token (CRV) price jumps as CRV inflation reduces to 6.35%

In a notable development for the decentralized finance (DeFi) space, the Curve DAO Token (CRV) has experienced a significant price surge after a substantial reduction in token inflation.

CRV’s inflation rate has dropped to 6.35%, a marked decrease from previous levels.

Curve Finance marks its fourth anniversary

The reduction in CRV inflation coincides with Curve Finance’s fourth anniversary, a milestone that Curve Finance has marked with a strategic adjustment in its tokenomics.

CRV turns 4 years, and CRV inflation reduces to 6.35%, which is 375k CRV per day.

Congratulations everyone! pic.twitter.com/eHsDZfMvkt

— Curve Finance (@CurveFinance) August 12, 2024

The daily CRV emissions have been cut to 375,000, translating to an annual inflation rate of 6.35%, down from last year’s 16.8%.

This shift comes as part of Curve Finance’s broader effort to enhance the sustainability of its decentralized autonomous organization (DAO).

This latest adjustment follows a pattern of annual reductions in CRV emissions since the token’s launch in 2020.

The annual issuance of CRV tokens has decreased from 274 million in 2020 to approximately 162.7 million in 2024.

This ongoing reduction has played a crucial role in the dramatic decrease in inflation rates, aligning with the end of all vesting periods on the Curve platform.

The total supply of CRV now stands at 2.09 billion, with approximately 930 million tokens locked as vote-escrowed veCRV, leaving a circulating supply of about 1.16 billion tokens.

Curve Finance also recently adopted its stablecoin, crvUSD, for fee distribution, aiming to simplify the fee process for users and further integrate the stablecoin into the platform’s ecosystem.

Curve DAO token (CRV) price has jumped 10%

The impact of these changes is evident in the recent performance of CRV. The token’s price has surged to $0.3157, reflecting a 10.0% increase over the past 24 hours.

Over the last week, CRV has seen a remarkable 43.0% price rise, and despite a decrease of 45.7% over the past year, the recent trend indicates a recovery and growing investor confidence.

CRV is currently ranked at position 154 in the cryptocurrency market, with its price also standing at 0.055344 BTC (up 11.0%) and 0.0001189 ETH (up 10.9%).

Additionally, Curve DAO recently reached a significant milestone, with CRV tokens locked in veCRV over the last 2 months exceeding CRV emissions.

The amount of CRV tokens locked in veCRV over the last 2 months just exceeded CRV emissions (token incentives) produced since Aug 13 last year, according to @0xcrv_hub data

— Curve Finance (@CurveFinance) August 9, 2024

This highlights the increasing sustainability of the ecosystem, as more tokens are being locked by participants, signaling long-term commitment to the platform.

As CRV continues to evolve and adapt, its price recovery and increasing DAO earnings suggest a promising future for both the token and the broader Curve Finance ecosystem.

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